Dear
Colleagues,
I
am pleased
to share with you the special issue of
UNCTAD’s SDG Investment Trends Monitor,
which presents a broad assessment of the impact of COVID-19 on international private sector investment in SDG sectors.
Key findings include:
-
International private sector investment flows to developing and transition economies in sectors relevant for the sustainable
development goals (SDGs) are on course to fall by about one third in 2020 because of the COVID-19 pandemic.
-
Except for renewable energy, where growth in new projects continued but was cut to one third of the pre-COVID level, investment
activity fell sharply across all SDG sectors. In infrastructure and infrastructure industries (including utilities and telecom) international project finance announcements were 62% lower in value. Greenfield project values across food and agriculture, water
and sanitation, health and education were all one to two thirds lower than in 2019.
-
The decline in SDG-relevant investment was much larger in developing and transition economies than in developed countries. Gains
in investment in renewable energy and digital infrastructure in developed economies are a first sign of the asymmetric effect that public support packages will have on global SDG investment trends.
-
Among developing and transition economies, the impact of the pandemic is more pronounced in the poorer regions. The decline in
the least developed countries (LDCs) is of particular concern. Greenfield project announcements in SDG sectors in LDCs fell by 31% and project finance decreased by 3%, with major declines in infrastructure investment and agri-food sectors.
-
The COVID-19 pandemic has more than undone the progress made in promoting SDG investment since 2015 – the year the SDGs were
adopted. Greenfield investment in SDG sectors in developing and transition economies is now 27% lower than before 2015, international project finance is 12% lower.
-
The outlook for investment in the SDGs is highly uncertain: future developments will depend on the duration of the health crisis and on the effectiveness
of policy interventions to mitigate its economic effects. Policy measures to facilitate investment in SDGs (UNCTAD’s
SDG Policy Monitor, December 2020), as well as development cooperation and financing support to developing countries will be important in determining
the trajectory of investment in the SDGs. WASH and health sector investments, both weak before the pandemic and severely affected by it, look set to receive increased attention.
Please see the
latest issues of the
SDG Investment Trends Monitor
here and UNCTAD’s Investment Policy Monitor
here.
Best regards,
James Zhan
